Strong Momentum Across Geographies: Expected Milestones in Israel Include Financial Closing of Hadera Expansion Project and a Final Investment Decision on Ramat Beka in June 2026; in The U.S., The Flagship Shay project in PJM is Accelerating and the Natural Gas Project Pipeline Has Expanded to 8.7 GW
TEL AVIV, Israel, May 20, 2026 /PRNewswire/ -- OPC Energy Ltd. (TASE: OPCE), a leading independent power producer in Israel and the U.S., providing reliable and efficient electricity generation through natural gas and renewable energy, today announced its financial results for the first quarter of 2026.
First Quarter 2026 Highlights:
- EBITDA increased approximately 10% year-over-year to approximately $124 million, while adjusted net profit rose approximately 18% to approximately $33 million.
- The Company continued to advance key growth initiatives in Israel and expects to reach Final Investment Decisions (FID) by the end of the second quarter of 2026 for:
- the Hadera Expansion project, with planned capacity of 850 MW;
- the Ramat Beka project, with planned capacity of 550 MW and 3,850 MWh of energy storage, with payment submission to the Israeli Land authority in the amount of $0.37 Billion (NIS 1.1 billion)
- Expanding Israeli operations into supply of electricity to the Data Centers sector through a long-term PPA agreement with a leading energy data centers developer with contracted capacity set to scale up to 460 MW over the coming years
- In the U.S., the Company expanded its natural gas development pipeline to approximately 8.7 GW (CPV share: approximately 7.4 GW), while continuing the accelerated development of its flagship Shay project in the PJM market (a combined-cycle power plant with a capacity of approximately 2.1 GW located in West Virginia, CPV share: 70%). Shay is the largest project in the portfolio of natural gas projects currently included in the PJM grid interconnection process (Transition Cycle 2), with interconnection agreement expected to be signed in early 2027. In addition, in recent months Shay entered into a slot reservation agreement with a leading global equipment manufacturer, which is also a partner in the project, and is well positioned to participate in PJM's Reliability Backstop Program (RBP) auction.
- Favorable market dynamics and regulatory developments in the PJM market continue to support the advancement of the Company's U.S. natural gas pipeline. In April 2026, FERC approved the extension of price collar mechanisms (maximum and minimum prices) for two additional capacity auctions, covering the period from June 1, 2028 through May 31, 2030. In parallel, PJM published an initial proposal for an emergency mechanism for the procurement of additional capacity (Reliability Backstop Procurement - RBP) of approximately 15 GW for periods of up to 15 years, aimed at addressing a shortfall in dispatchable electricity capacity stemming from growing power demand, with the process expected to launch in September 2026.
- Full ownership was secured in recent months in the Shore, Basin Ranch, and Maryland power plants, in line with the company's strategy to increase its holdings and gain control of natural gas power plants.
- Advancement of the renewable energy project pipeline, CPV is advancing renewable energy projects that qualify under Safe Harbor rules, with a total capacity of approximately 1.9 GW (CPV's share: 1.3 GW).
- Upgrade of credit rating outlook by Midroog - reaffirmed the Company's and its bonds' issuer rating at A1.il, while revising the outlook from Stable to Positive, reflecting the strengthening of the Company's financial profile driven by a significantly enhanced capital base and continued improvement in the performance of its U.S. natural gas operations.
- In March 2026, the Company completed a capital raise of approximately $257 million (NIS 800 million), strengthening its financial position and supporting continued growth and business development initiatives, following capital raises of about $611 million (NIS 2.2 billion) in 2025.
Giora Almogy, Chief Executive Officer of OPC Energy Ltd., commented:
"We delivered strong first quarter 2026 results, reflecting continued business momentum across both of our core markets, Israel and the United States.
In the US, the company's growth is supported by strong electricity demand, particularly in our key markets: PJM and ERCOT, driven by long-term structural electrification trends alongside a significant acceleration in Data Center sector activity, especially with the rapid expansion of AI applications. The company holds a significant natural gas project pipeline of approximately 8.7 GW in PJM, being developed in an unprecedented supportive macroeconomic and regulatory environment. This includes the accelerated development of the flagship Shay project (CCGT, 2.1 GW, CPV Share 70%) in PJM, the largest project currently included in the advanced grid interconnection process (Transition Cycle 2), with an interconnection agreement expected to be signed in early 2027. The Shay project recently executed a Slot Reservation agreement with a leading global equipment manufacturer, which is also a project partner, and is well positioned to participate in PJM's Reliability Backstop Procurement (RBP) auction to secure capacity prices for up to 15 years, expected to launch in September 2026.
In Israel, we are preparing for a significant expansion in the scale of our operations and expect to reach Final Investment Decisions (FID) during the second quarter of 2026 for two strategic projects: the Ramat Beka and Hadera Expansion projects. In addition, we recently signed a PPA agreement with a leading data center developer with contracted capacity set to scale up to 460 MW over the coming years.
Lastly, in March 2026 we completed a capital raise of approximately $257 million (NIS 800 million), further strengthening our financial position and expedited growth. With high-quality assets in both Israel and the U.S., a favorable macro and regulatory environment, and a clear long-term diversified strategy, we remain focused and committed to creating sustainable value for all our stakeholders."
First Quarter 2026 Financial Highlights
Millions of dollars | For the three months ended | |||
2026 | 2025 | % | ||
Consolidated | EBITDA after proportionate consolidation | 124 | 113 | 10 % |
Net income | 14 | 25 | (44 %) | |
Adjusted net income | 33 | 28 | 18 % | |
FFO | (21) | 89 | (124 %) | |
Adjusted FFO | 75 | 69 | 9 % | |
Israel | EBITDA | 44 | 38 | 16 % |
FFO | 24 | 53 | (55 %) | |
Adjusted FFO | 27 | 29 | (7 %) | |
USA | EBITDA after proportionate consolidation | 83 | 77 | 8 % |
FFO | (34) | 41 | (183 %) | |
Adjusted FFO | 53 | 48 | 10 % | |
*For definitions of the financial metrics, please refer to the Company's Board of Directors' Report for the first quarter of 2026.
Review of First Quarter 2026 Financial Results:
- Consolidated EBITDA after proportionate consolidation in the first quarter of 2026 increased by approximately 10% to $124 million, compared to approximately $113 million in the corresponding quarter last year.
- In Israel, EBITDA rose by approximately 16% to $44 million, compared to $38 million in the corresponding quarter last year, primarily due to the impact of translating Israel's operating results into USD presentation currency, which weakened materially against the Shekel and the increase in energy margin.
- In the U.S., EBITDA after proportionate consolidation rose by approximately 8% to $83 million due to an increase in energy margins and capacity revenues in PJM, as well as an increase in the holding rate in the Shore power plant.
- Adjusted FFO for the quarter increased by 9% and reached $75 million, compared to $69 million in the first quarter of 2025, due to the increase in adjusted EBITDA.
- Adjusted net profit increased to approximately $33 million, compared to approximately $28 million in the corresponding quarter last year. Accounting net profit for the quarter amounted to approximately $14 million.
Conference Call Information
Giora Almogy, Chief Executive Officer, and Ana Bernstein Shvartsman, Chief Financial Officer, will hold an investor conference call in English to review the financial results today, May 20, 2026, at 8:00 a.m. Eastern Time, 3:00 p.m. Israel Time
The conference call may be accessed via the following link: https://www.veidan-conferencing.com/opcen
Recordings will be published on the Company's website at: http://www.opc-energy.com/en shortly following the investors' conference and the conference call.
To attend the conference call via phone, please dial one of the following teleconference numbers.
Phone one-tap:
+1-253-205-0468,88604913597# US
Join via audio:
+1 253 205 0468 U.S.
+972 3 978 6688 Israel
International Numbers
Webinar ID: 886 0491 3597
About OPC Energy
OPC Energy Ltd. (TASE: OPCE) is a leading energy company operating in the Energy Transition space in Israel and the U.S. and provides electricity in an efficient, reliable and environmentally friendly manner while combining highly efficient natural gas with solar, wind and storage.
In Israel, OPC is the first and leading private electricity producer, offering its customers an integrated solution by supplying all energy needs through the company's production sites and in the customer's yard. OPC continues to expand its generation portfolio and customer base in Israel, advancing a growing pipeline of renewable and natural gas projects to support the evolving needs of the Israeli electricity market.
In the U.S., the company operates through the CPV Group, which has over 25 years of success in the development and operation of highly efficient, low emission electric generation and renewable projects. CPV is focused on leveraging its extensive experience to advance its current portfolio of 15 GW of renewable and natural gas projects.
For more information, please visit: www.opc-energy.com/en
Company Contact:
Ana Berenstein Shvartsman, CFO [email protected]
Yehonatan Mualem, Finance & IR Manager [email protected]
Investor Relations Contact:
Miri Segal, CEO, MS-IR LLC, [email protected]
Logo: https://mma.prnewswire.com/media/2918125/OPC_Energy_Logo.jpg
SOURCE OPC Energy
